After a 2016 dominated by value-oriented stocks, growth-oriented US stocks have made a decisive comeback in 2017 as of April 20 according to the Russell US style indexes.
After rising 7.1% in 2016 as compared to a 17.3% rise for the Russell 1000® Value Index, the US large cap Russell 1000® Growth Index has risen 9.3% in 2017 as compared to a 2.6% rise for the Russell 1000 Value Index.
And after rising 11.3% in 2016 as compared to a 31.7% rise for the Russell 2000® Value Index, the US small cap Russell 2000 Growth Index has risen 5.6% in 2017 as compared to a -0.5% decline for the Russell 2000 Value Index.
Is the recent style shift for US equities a short-term blip, or does it reflect a longer-term secular trend? FTSE Russell index experts believe short-term style swings may reflect a more volatile market environment.
Mat Lystra, Senior Index Research Analyst, FTSE Russell, said:
“The current market environment as reflected by the Russell style indexes is a great example of the need to be mindful of both growth and value influences on investors and the markets. It is typical to see short-term swings between value- and growth-oriented stocks during periods of more volatility and less conviction on the part of investors, and a natural reflection of a number of factors including the beginning of a new presidential administration and the inherent change that brings as well as heightened geopolitical concerns, among other trends weighing on investors.”
Source: FTSE Russell as of April 20, 2017. Past performance is no guarantee of future results. Please see the disclaimer for important legal disclosures.
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